Auto Insurance Company Lawyers: Friend Or Foe?

Auto insurance company lawyers are generally good at reducing settlement amounts or denying claims. The higher the claim amount, the harder the insurance companies and their attorneys fight. Auto insurance company lawyers are also good at manipulating the facts of a claim or searching for loopholes in the contract to avoid payment. They are also known for delaying claims, scrutinising and misinterpretating statements, and accessing medical records to justify paying less. However, auto insurance company lawyers are not always effective, and there are instances where they are deemed to be treating their customers unfairly.

When auto insurance companies might not provide a lawyer

Auto insurance companies usually have a "duty to defend" their clients in court. However, there are some situations in which they might not provide a lawyer. Here are some scenarios where this could be the case:

Failure to Notify the Insurer

If the policyholder fails to notify the insurance company about the accident within the specified time limit, the company might void its duty to defend. This is especially true if the delay hinders the insurance company's ability to investigate the accident or mitigate losses related to the other driver's claim. Therefore, it is crucial to notify the insurer as soon as possible after an accident, ideally the same day or the next day at the latest.

Intentional Acts

Automobile insurance policies typically cover negligent actions, not intentional ones. If the policyholder is accused of intentionally causing the accident, the insurance company might refuse to provide coverage or a lawyer. For example, drunk driving is sometimes considered an intentional act, and insurers may refuse to cover claims arising from a DUI incident.

Policy Limit Exceeded

If the damages paid out by the insurer reach the policy's coverage limit, the company may no longer be obliged to provide a lawyer. Once the limit is reached, the insurer has no further duty to the insured, including providing legal representation.

Lack of Bodily Injury Coverage

In some cases, car insurance policies may not include bodily injury liability coverage, which helps pay for another person's injuries in an accident where the policyholder is at fault. Without this coverage, the insurance company may not provide a lawyer if the policyholder is sued for medical bills or other damages resulting from the accident.

Disputed Liability

If the insurance company disputes its policyholder's liability, it is essentially stating that its policyholder is not at fault and, therefore, the company is not responsible for paying any damages. This usually occurs when fault is unclear, there are discrepancies in witness statements, or the insurance company believes there is insufficient evidence to prove their policyholder's fault. In such cases, the insurance company may not provide a lawyer as they are contesting liability.

When to hire a lawyer for an auto insurance claim

If you've been in a car accident, you may be wondering whether you need to hire a lawyer to help with your insurance claim. While it's not always necessary to have legal representation, there are certain situations in which hiring a lawyer can be beneficial.

Firstly, consider the severity of the accident and the extent of your injuries. If you have serious, long-term, or permanent injuries that have affected your quality of life and ability to work, you should strongly consider consulting with an attorney. Proving these types of injuries can be complex and challenging, and an experienced personal injury lawyer can help ensure you receive the compensation you deserve.

Another important factor to consider is whether fault is being contested. If the other driver caused the accident but is refusing to admit liability, you will need to prove that they were at fault in order to win your claim. An attorney can help you gather evidence and build a strong case.

If you are concerned that the settlement offer from the insurance company is too low, an attorney can review the offer and negotiate with the insurance company on your behalf. They can also advise you on whether the offer is fair and reasonable based on the facts of your case.

Additionally, if your case is going to court, it is highly advisable to have an attorney represent you. Court proceedings can be complex, with formal rules and technicalities that an attorney will be able to navigate effectively.

Other situations in which you may want to consider hiring a lawyer include:

• A death occurred as a result of the accident
• Pedestrians were involved
• The accident happened in a construction zone
• You or the other driver doesn't have insurance
• Your insurance company claims you haven't paid your premium, but you have
• You are at fault or partly at fault, and you are concerned your insurance won't cover the damages
• Your insurance company is acting evasively or involving their own attorneys

Remember that every case is unique, and it's always better to err on the side of caution when it comes to car accident claims. Many accident attorneys offer free consultations, so you can explore your options without any obligation to hire them.

How to respond to a low settlement offer

It is important to remember that you are not obligated to accept an insurance company's settlement offer. Here are some steps you can take to respond to a low settlement offer:

• Hire a lawyer: If you haven't already, consider hiring an experienced personal injury or car accident lawyer to handle communications and negotiations with the insurance company. They will be able to assess whether the offer is fair and, if not, negotiate on your behalf for a higher amount.
• Understand your claim's value: Before responding to the insurance company, it is important to understand the value of your claim. This includes calculating both your economic and non-economic damages. Economic damages include medical bills, property damage, lost wages, and other out-of-pocket costs. Non-economic damages cover pain and suffering, emotional distress, loss of enjoyment of life, and other intangible losses.
• Counter with a demand letter: Work with your lawyer to draft a demand letter that presents your side of the story, including how the accident happened, who was at fault, the medical treatment you've received, and how the accident has impacted your life. Include a counteroffer that is higher than what you are willing to settle for.
• Evaluate the adjuster's response: If the insurance adjuster comes back with another offer, evaluate whether it is reasonable and whether they have provided evidence to support their position.
• Continue negotiating: Negotiating is a typical part of the settlement process, so don't be afraid to go back and forth with the insurance company until you reach a fair agreement. Remember that you can always escalate the matter by working with a lawyer or, if necessary, filing a personal injury lawsuit.

How to deal with auto insurance companies after an accident

Dealing with insurance companies after a car accident can be a complicated process, especially if you've never been in an accident before. Here are some steps to help you navigate the process and protect yourself:

At the Accident Scene:

• Stop and assess the situationmove out of the way of traffic.
• Call 911: If anyone is injured, call for emergency medical assistance. Even if there are no apparent injuries, consider calling the police, especially if the accident involves significant property damage. The police can help document the scene and gather information from those involved.
• Gather information: Obtain the names, addresses, phone numbers, driver's license numbers, license plate numbers, and insurance information from all drivers involved. Also, get contact information from any witnesses.
• Take photos: Use your phone or camera to take pictures of the accident scene, including vehicle damage, traffic controls, and visual obstacles.
• Notify your insurance company: Contact your insurance provider as soon as possible to inform them of the accident.

After the Accident:

• Seek medical attention: Even if you don't feel injured, it's important to get checked by a medical professional. Some injuries may not be immediately apparent.
• Keep records: Make copies of all bills related to the accident, including medical expenses and vehicle repair costs.
• Contact an attorney: Consider consulting a lawyer, especially if there are disputes over fault or if you have significant injuries. An attorney can help protect your rights and guide you through the claims process.

Dealing with Insurance Companies:

• Understand your policy: Familiarize yourself with your insurance policy to know what is covered and what is excluded. Review the declaration page and ensure you understand your coverage limits and deductibles.
• Document damages: Take photos of any damage to your vehicle and the other vehicles involved. If possible, take pictures of any injuries sustained.
• Gather multiple repair estimates: Visit a trusted mechanic or body shop to get estimates for repairing your vehicle. Having multiple estimates will help you understand the fair cost of repairs and negotiate with the insurance company.
• Be cautious with recorded statements: Insurance adjusters may ask to record your statement. Remember that they are trained to gather information that may reduce the value of your claim. Be careful about the information you provide and consider consulting an attorney before providing a recorded statement.
• Understand the "betterment argument": Insurance companies may argue that repairing your vehicle with new parts will increase its value. They may charge you for this increased value or reduce your payout. To counter this, you can provide evidence, such as a mechanic's testimony, that the repairs will not increase the value of your vehicle.
• Negotiate in good faith: If the insurance company's initial settlement offer is not sufficient, you have the right to negotiate. Ask the adjuster to explain their offer and provide a counterproposal based on your repair estimates.
• Understand total loss or write-off: If your vehicle is extensively damaged, it may be considered a total loss or write-off. This happens when the cost of repairs exceeds the actual cash value of the vehicle. The criteria for determining a total loss vary by state, so understand the regulations in your state.
• Get everything in writing: Once you agree on a settlement, make sure to get the negotiated payout amount and any stipulations in writing.

Remember, it's important to be proactive and thorough when dealing with insurance companies after an accident. Keep good records, gather the necessary information, and don't be afraid to seek legal assistance if needed.

How to choose the right auto insurance company

Choosing the right auto insurance company is important to ensure you get the best coverage for your needs. Here are some tips on how to select the right provider:

Understand Your Needs and the Types of Coverage Available

First, evaluate your unique circumstances and financial situation. Consider what type of driver you are, whether you have teen drivers in the household, and your preferences for managing your insurance. Familiarize yourself with the different types of insurance coverage, including liability, collision, comprehensive, uninsured/underinsured motorist, and medical or personal injury protection.

Research and Compare Insurance Providers

Look for insurance providers that match your priorities and circumstances. Consider both large and small insurers, as they have different advantages. Research their customer service reputation, responsiveness, and financial strength ratings from third-party sources like J.D. Power and AM Best. Check your state's department of insurance website for consumer complaint ratios and basic rate comparisons.

Assess Affordability and Value

Determine how much coverage you need and can afford. Consider your financial resources and whether you own a lot of assets, as this may influence the level of liability coverage you require. Evaluate the cost of the premium, payment schedules, and potential discounts for paying annually. Compare quotes from at least three different insurers to find the best rates and value.

Evaluate Customer Service and Interaction

Consider how you prefer to interact with the insurance company, such as through a mobile app, online portal, phone, or local agent. Assess the company's customer service reputation, including their claims service and responsiveness.

Check Financial Stability and Licensing

Ensure the insurance company has strong financial stability by checking ratings from agencies like AM Best and Standard & Poor's. Verify that the insurer is licensed in your state by checking your state's insurance division website.

By following these steps and researching multiple options, you can make an informed decision when choosing the right auto insurance company for your needs.

Frequently asked questions